StarTree final congress “Wild Forest Products in Europe

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Wild forest productsinternational trade: which

opportunities for the Europeanmarket?

StarTree final congress“Wild Forest Products in Europe” 13–14

Barcelona, October 2016

Davide Pettenella, Enrico VidaleRiccardo Da Re and Giulia Corradini

A work carried out under the StarTreeproject (Working Package 3)

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• Methodology

• Results

• Policy implications

Outline

Methodology

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Three fundamental steps:1. Definition of NWFP2. Data source3. Data cleaning

Methodology

Forestproducts

STARTREE target

Animal Products

Plants products

Forest Products

Non-Timber ProductsTimber Products

Wood Non-Wood

Flora FaunaSoil

Clay, Chalk & Sand

Bush meat

Trophy

Skin

Plants Fungi

Tree

Shrubs

Herbs & Grasses

- Latex- Gum- Resin- Fibre- Dye- Sap- Cork- Bark

pieces

Stem & Bark

Leaves

- Forage- Fodder

Litter

Flower & Fruits

- Food- Oil- Spices- Honey

Mushroom

Truffles

Spawn

Fuelwood

Poles

Wood derived

No clear distinction between:•wild harvested or cropped;

•raw or processed product;•Production in the forest or in other lands.Source: (FAO 1999 - mod)

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Different approaches in definition:• By the origin• By the typology of products (by species) • By level of processing (raw, processed, end product)• by commercial categories (size, fresh, dry, purity, etc.)• By the end use (food, fiber, …)• By management system• By functional use• ...

Definition

1. NWFP definition

NWFP are “products of biological origin other than wood derived from forests, other

wooded land and trees outside forests” -(FAO 1999)

NTFP are “all biological materials other than timber which are extracted from forest for human use” - (De Beer and McDermott

1989)

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NWFP definitionA slight convergence in the definition of NWFPs comes from national laws and standards proposed by certification bodies.

Today a terminology of the ’90s, close to the consumer understanding as "wild product" resulting from "collection of edible plants and parts thereof, growing naturally in natural areas, forests and agricultural areas” (EU Reg. 2092/91; see Kilchling et al. 2009)

The concept of “wild product” is recognized by the NWFP customers! à “Wild Forest Products” (WFP) should be used in communication

and marketing

Coordination of classification approaches developed in Star-Tree

Ecological classification Trade classification

Ecol

ogic

al p

ositi

on o

f the

NW

FP

NW

FP ty

pe

WFP

type

WFP

co

mm

odity

gro

up

Cod

e

Cod

e

Cod

e va

lidity

Source: WCO (2014) mod.Source: WCO (2014), ComTrade (2013), mod.

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Strategic role of WFP definition

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nU

S$

NWFP(all) Mixedsource WildNWFP

Different definitions, different outputs!

2. WFP trade data sources– International:

• ComTrade• FAOStat• EuroStat• US Bureau • World Bank • ...

– Other: national/sectoral (national statistical agency, category associations, etc.)

more detailed (less aggregated than FAO), primary source for FAO, more “international” (not focused on EU countries), …

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Exam

ple

of tr

uffle

pric

e (a

vera

ge p

rice

per y

ear [

€/Kg

])3. Selection of a data cleaning approach:the problem

Data cleaning

• No common agreed methodology to deal with the problem of outliers and the mismatch of data on import-export

• Only suggested approaches

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Selection of a data cleaning approach

A new data cleaning methodology• No common agreed methodology to deal

with the problem of outliers and the mismatch of data on import-export

• Only suggested approaches• A new methodology developed and tested

(now also in other products trade analysis)– Mirroring technique selection– Outliers detection– Missing data estimation

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Results

Three fundamental steps:1. General trade patterns analysis (trends,

concentration: top importers, top exporters, …)

2. Focus on 4 main WFP target categories3. More advanced statistical analysis

Data elaboration

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Some spot results will be presented.For more information

1. General trade patterns analysis Some examples Cork price: three market segments inside the international trade

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aver

age

pric

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<log(1.5) [log(1.5);log(2.3)] >log(2.3)

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General trade patterns analysis Some examples Top exporters on tanning market (ton)

Some examplesWild mushroom

Domesticated mushrooms are the predominant part of the market in terms of bulk

Wild mushrooms cover the 26.4% of the total traded volume that worthies the 45.6% of the total value (4.98 B US$ in 2011)

Boletes prices are approximately 6.15 €/kg at wholesaler level and chantarelles has been stabilized globally close to 4.5-5€/kg

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S$

Analysis of trends

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General trade patterns analysis EU28 total imports, exports and trade balance for quebracho and wattle tannins, from 1996 to 2012 (million dollars)

EU-World. Trade balanceCode

Level of processing

Part of wild harvest?

World From EU28 To EU28 EU28 balance

World-EU282011 2011 2011 Exp. % Imp. %

Honey 040900 Raw Yes 1906 616 1019 -403 32.34 53.48Mosses 060410 Raw Yes 58 33 37 -4 55.98 62.61Fresh foliage 060491 Raw Yes 1210 729 887 -157 60.29 73.28Dry foliage 060499 Raw Yes 367 170 231 -61 46.33 63.06Fresh & frozen Agaricus 070951 Raw No 1302 1102 972 129 84.63 74.68Fresh & frozen truffles 070952 Raw Yes - - - - - -Fresh & frozen mushrooms 070959 Raw Yes 785 414 480 -66 52.69 61.12Preserved Agaricus 071151 Processed No 101 32 53 -21 32.07 52.99Preserved mushrooms 071159 Processed Yes 119 17 85 -68 14.45 71.68Dried mushrooms 071230 Raw Yes - - - - - -Dried Agaricus 071231 Raw No 116 41 58 -17 35.52 49.94Dried Auricularia 071232 Raw Yes 196 4 16 -12 1.95 8.12Dried Tremella 071233 Raw Yes 55 1 2 0 2.30 3.08Dried mushrooms 071239 Raw Yes 1370 71 170 -100 5.17 12.44Almonds 080211 Raw No 1043 36 55 -19 3.41 5.28Shelled almonds 080212 Processed No 3369 671 1710 -1038 19.93 50.75Hazelnuts 080221 Raw No 180 25 41 -17 13.61 23.00Shelled hazelnuts 080222 Processed No 1782 296 1342 -1046 16.60 75.32Walnuts 080231 Raw No 987 164 308 -144 16.61 31.23Shelled walnuts 080232 Processed No 1545 219 678 -459 14.15 43.88Chestnuts 080240 Raw Yes 299 153 121 31 51.05 40.60Pistachios 080250 Raw No 3013 524 1287 -763 17.38 42.70Fresh strawberries 081010 Raw No 2579 1604 1533 71 62.18 59.41Fresh raspberry 081020 Raw No 1173 410 442 -32 34.97 37.70Fresh currants 081030 Raw No - - - - - -Fresh cranberries 081040 Raw Yes 1428 345 488 -143 24.14 34.18Fresh other 081090 Raw No 2948 713 914 -201 24.19 30.99Frozen strawberries 081110 Raw No 1090 479 706 -227 43.95 64.73Frozen raspberries 081120 Raw No 951 416 694 -278 43.72 73.00Frozen fruits and nuts 081190 Raw Yes 2530 1033 1484 -451 40.82 58.66Prepared Agaricus 200310 Processed No 1179 572 568 4 48.48 48.17Prepared truffles 200320 Processed Yes 29 24 17 6 82.02 59.62Prepared mushrooms 200390 Processed Yes 228 84 87 -3 36.77 38.20Quebracho tannins 320110 Raw Yes 85 7 32 -25 8.27 37.07Wattle tannins 320120 Raw Yes 130 4 24 -19 3.37 18.25Other tannins 320190 Raw Yes 195 92 57 35 47.05 29.12Natural Cork 450110 Raw Yes 147 140 132 8 94.88 89.67Cork in piecies 450190 Processed Yes 93 79 69 10 84.94 74.10Cork squared 450200 Processed Yes 72 63 42 21 87.82 58.45Cork Stopper 450310 Processed Yes 743 705 406 299 94.92 54.71

Total overview 35403 12086 17247 -5161 34.14 48.72Total overview (only raw and partially wild sourced products) 10761 3811 5180 -1368 35.42 48.13

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Background questionnaire

2. Focus on 4 main WFP target categories

Key products for the EU industry in which there is a international leadership:

• Chestnuts• Tannins • Wild mushroom• Cork

Target WFP in EU

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• Italy is (probably was) the largest traders in the world (~26% of world trade)

• Quite stable economy with an average global price of 2€/kg

• There is a new trend on import and this is due to the Asian Gall-Wasp

• Italy, France and Japan are the largest processing countries for chestnuts

Target WFP in EUChestnuts

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100000

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200000

met

ricto

ns

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mill

ion

USD

• 3 major importers (~80% world trade)

• Future availability?• An increased consumption in the

future by skin working industry

Target WFP in EUTannin

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Mig

liaia

di T

onne

llate

Quebracho Wattle (Acacia spp.) Oak & Chestnut

Marketexpansionbaseonwildcollection

Marketmaturenessbasedonwildprod.

(supplystabilizationoverthedemand)

Resourcedepletionduetothehighdemandorproduct

reductionduetoalternativegoodsputintothemarket


Target WFP in EUTannin: EU28 imports and exports’ partners for tannins (only quebracho and wattle) in 2011 with respect to global trade

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Mig

liaia

di T

onne

llate

Quebracho Wattle (Acacia spp.) Oak & Chestnut

Marketexpansionbaseonwildcollection

Marketmaturenessbasedonwildprod.

(supplystabilizationoverthedemand)

Resourcedepletionduetothehighdemandorproduct

reductionduetoalternativegoodsputintothemarket


• Italy is the fourth largest traders in the world both in export (~7% w.t.) and import (~6% w.t.)

• The core international customer is Germany due to higher purchasing power

• The main problem of the sector is not the consumption but the production (still lacking)

• From fresh to frozen and dried WM• Lack of reliable (global) data

Target WFP in EUWild mushrooms

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3. More advanced statistical analysisSome examples: honey (value and quantity)

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Mt

Import Export Re-Export Re-import

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M$


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1988199019921994199619982000200220042006200820102012

Aver

age

pric

e[$

/Kg]

Import Export

More advanced statistical analysis Some examples: honey (number of flows and avg. prices)

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$/lin

k]


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avg

tons

per t

rade

flow


More advanced statistical analysis Some examples: honey (avg. value per trade flow and avg. quantity per trade flow)

More advanced statistical analysis Example: honey trade (2012)

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Sub continental TNA & Top tradersExample from wild mushroom

China is undoubtedly the largest fresh wild mushrooms exporter in the world, both in terms of quantity and economic value; alone, it accounted for the 21.2% of the export value in 2012

Poland and Nederland are the two main gate to EU market

Core global consumers are Japan, Germany, France, Italy and UK

HS6: 070959

Moreadvancedstatisticalanalysistruffle business example

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n. t

otal

links

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20072006

Moreadvancedstatisticalanalysistruffle business example

Regional scale

40

MoreadvancedstatisticalanalysisNetwork analysis

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MoreadvancedstatisticalanalysisNetwork analysis

Policy implications

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Final remarks• Nocommonpatternintrade(andproduction)ofallWFP• Formostofthemtraderelationsareincreasing:internationalization ofthemarket,alsointra-trade intheEU

• Trade isplayingaincreasingroleincoveringEUfastgrowingdomesticdemandà someissuesarebecomingmorerelevant:

• QA andtraceability• Phytosanitaryproblems• Definitionoforigin (typical“Italian”pestomadewithPakistanpine

nuts)• Taxation (fairtradeconditions)• …

• Verydynamicmarketevenfor“old”products(resin,tannin,chestnut,…)

Final remarks

Improve and coordinate WFP international trade monitoring: • Propose an amendment of the HS

classification?• Develop a new WFP classification system?• Publish an EU market review? At which costs?

(methodology: Delphy, omnibus survey, ...)

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Source: Reith and Steinmetz (2009); Fava (2015)

75% of the biorefinerysites and 70% of the largest sea harbors are located within a circle consisting of France, Germany, Denmark, Belgium, the Netherlands, and the UK

Why all these efforts?Don’t leave to the policy makers (and EU citiezen) think that bioeconomy means bio-rafineries ...

Technological approach vs. social approach in bioeconomy

Technologicalapproach SocialapproachFocuson Technologicalinnovations,large

scaleinvestmentsSocialinnovations,smallscale,highaddedvalueP&S(à lowrisk)

Verticalvs.horizontalrelations

valuechainperspective;sectoraldevelopment;verticalintegration

networkeconomy,inter-sectoraldevelopment;horizontalintegration

Diversificationoutputandinputs

Woodastheuniquerawmaterial;diversificationinoutputs

Diversificationintheuseofinputs(industrialwood,biomass,WFP,ES,…)

Marketpower Increasedmarketpoweroftheindustrialcompaniescontrollingtheadvancedtechnologies(à highrisksconnectedtothecompaniesconsolidationtrends)

Balancedmarketpoweramongthevariousdiversifiedoperators(à reducedriskduetodiversification)

Modelregions UK,Scandinaviancountries Mediterraneancountries,mountainregions

Examples InnovationassessmentapproachbytheEUEcoInnovationObservatory(http://www.eco-innovation.eu/ )

LocalActionGroups(Leader+approach-http://enrd.ec.europa.eu/enrd-static/leader/en/leader_en.html)

Drivers Patented(private)R&Dinitiatives,withpublicsupport

Public-privateinitiativesineducation,trainingandnon-patentedinnovations

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WFP arealso

Bioeconomy!

Documents

StarTree final congress “Wild Forest Products in Europe